Yellen says no

Bank of America shares tumbled the most in eight months as Wall Street learned of its struggle to build back lending income in the second quarter. While government aid programs helped big lenders dodge widespread defaults during the pandemic recession, they also enabled consumers and businesses to avoid new loans or lines of credit. For Bank of America, that translated into a 12% drop in loans and leases in its consumer unit from a year earlier. And it’s not alone: The trend, along with rock-bottom interest rates, have weighed on the profitability of core lending businesses at many banks. —David E. Rovella

Bloomberg is tracking the progress of coronavirus vaccines while mapping the pandemic worldwide.

Here are today’s top stories

U.S. Treasury Secretary Janet Yellen has no plans to resurrect the once regular economic dialogue that governed relations between the U.S. and China during the Bush and Obama administrations.

Federal Reserve Chair Jerome Powell said the U.S. economic recovery still hasn’t progressed enough to begin scaling back the central bank’s massive monthly asset purchases. He added that inflation is likely to stay high in coming months before moderating. With news that the cash will continue to flow, Wall Street cheered. Here’s your markets wrap.

Larry Fink isn’t quite so sanguine, though. The BlackRock chief executive said he doesn’t see rising prices as a temporary state of affairs. So with that in mind, he gave a blanket raise to his employees.

Key Democratic Senators Joe Manchin of West Virginia and Jon Tester of Montana said Wednesday they aren’t on board with a $3.5 trillion budget deal just yet. Both from heavily Republican states, the two men said they will wait for the details.

Indonesia surpassed India’s daily Covid-19 case numbers, marking a new Asian virus epicenter as the spread of the highly-contagious delta variant drives up infections in Southeast Asia’s largest economy. In nearby Australia, that country’s virtually Covid-free status once made it the envy of the world. Then the delta variant arrived, and suddenly it found itself dangerously exposed. Here’s the latest on the pandemic.

South Africans are expected to face major food shortages in the wake of violent unrest across two key provinces, as rioters upend supply chains by looting supermarkets and torching delivery trucks.

Sharon Yeshaya has been known to Morgan Stanley’s top brass ever since Chief Executive Officer James Gorman plucked her from the fixed-income division to make her his chief of staff. Soon, all of Wall Street will know her, now that she’s risen to chief financial officer.

What you’ll need to know tomorrow

Marriages Boom. Guests Don’t Want to Come

As the pandemic slows in some parts of the U.S., couples who got engaged during lockdowns are planning to tie the knot, and weddings that were postponed in 2020 are moving forward. Indeed, marriages are set to rebound by more than 50% this year. But if all those happy couples think they will be walking down the aisle surrounded by cheering friends, think again.

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